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Pre-Budget 2027 Wishlist: Industry Body Pushes Tax Cuts, MSME Credit Reforms
Sentiment: NeutralHigh Priority
What Happened?
Ahead of the Union Budget 2027-28, the PHD Chamber of Commerce has proposed reforms to enhance access to finance for MSMEs, including tax cuts and increased loan limits.
Key points
- PHDCCI recommends abolishing long-term capital gains tax on equity investments.
- Short-term capital gains tax should be reduced from 20% to 10%.
- The NPA classification period for MSME loans should be extended from 90 to 180 days.
- Loan limits under PM MUDRA Yojana should be increased to reflect rising project costs.
- Direct government equity support for MSMEs is proposed through the Fund of Funds Scheme.
Key insights
- The proposed tax reforms may encourage more investments in the equity market.
- Extended NPA classification could provide MSMEs with more time to recover from financial setbacks.
- Increased loan limits under PM MUDRA could help MSMEs manage rising operational costs.
Why it matters
These recommendations could significantly impact MSMEs by improving their access to finance and fostering growth.
Source
Times Now
